World's largest car maker Toyota today said it is in talks with vendors to minimise investment on its small car to be rolled out in early 2011, and to procure components at lower rates.

"We are trying very hard to reduce our investment for the upcoming second plant in Bangalore to roll out a small car by early 2011. We are negotiating with vendors for reducing delivery prices," Toyota Kirloskar Motor (TKM) Managing Director Hiroshi Nakagawa told PTI on the sidelines of the SIAM annual convention here.

The Japanese auto maker, which is present in India through a joint venture with the Kirloskar Group, is investing Rs 3,200 crore for setting up a new production facility in Bangalore to launch its 'strategic' small car here.

Nakagawa said the company is comparing the prices and quality of the components of various vendors for its small car and is improving internal efficiencies for a reduction in the investment.

He however, declined to quantify how much cost reduction the the company is aiming to achieve through the exercise.

"We are targeting to produce 70,000 units of small car in the first year, which will only be for the domestic market," Nakagawa said.

Asked if the company would consider bringing a Daihatsu brand car in India, Nakagawa replied in the negative.

TKM is targeting to cross 52,000 units in sales this year, up from about 51,000 units in 2008.